Pagaya Technologies (NASDAQ:PGY) Shares Gap Up After Strong Earnings

Pagaya Technologies Ltd. (NASDAQ:PGY)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $14.83, but opened at $16.90. Pagaya Technologies shares last traded at $16.07, with a volume of 2,936,873 shares traded.

The company reported ($40.85) EPS for the quarter. Pagaya Technologies had a return on equity of 44.24% and a net margin of 6.25%.The firm had revenue of $91.63 million for the quarter.

Analyst Upgrades and Downgrades

A number of research analysts have commented on PGY shares. Zacks Research cut Pagaya Technologies from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 2nd. Freedom Capital upgraded Pagaya Technologies to a “strong-buy” rating in a research note on Tuesday, February 3rd. Benchmark decreased their price target on Pagaya Technologies from $48.00 to $33.00 and set a “buy” rating on the stock in a research note on Tuesday, February 10th. Canaccord Genuity Group reduced their price objective on Pagaya Technologies from $39.00 to $32.00 and set a “buy” rating on the stock in a research note on Tuesday, February 10th. Finally, Jefferies Financial Group reduced their price objective on Pagaya Technologies from $35.00 to $30.00 and set a “buy” rating on the stock in a research note on Tuesday, February 10th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $33.11.

Insider Activity

In other news, Director Tami Rosen sold 9,720 shares of the stock in a transaction on Friday, April 17th. The stock was sold at an average price of $15.14, for a total value of $147,160.80. Following the sale, the director directly owned 37,544 shares in the company, valued at approximately $568,416.16. This trade represents a 20.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Evangelos Perros sold 13,004 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $11.34, for a total value of $147,465.36. Following the completion of the sale, the chief financial officer owned 122,174 shares in the company, valued at approximately $1,385,453.16. The trade was a 9.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 46,756 shares of company stock worth $558,738. Corporate insiders own 47.59% of the company’s stock.

Institutional Trading of Pagaya Technologies

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Millennium Management LLC raised its stake in Pagaya Technologies by 75.2% in the fourth quarter. Millennium Management LLC now owns 1,738,760 shares of the company’s stock valued at $36,340,000 after buying an additional 746,216 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in Pagaya Technologies by 26.7% in the first quarter. Goldman Sachs Group Inc. now owns 1,705,245 shares of the company’s stock valued at $17,871,000 after buying an additional 359,099 shares in the last quarter. Two Sigma Investments LP raised its stake in Pagaya Technologies by 5.2% in the third quarter. Two Sigma Investments LP now owns 1,452,578 shares of the company’s stock valued at $43,127,000 after buying an additional 71,639 shares in the last quarter. Renaissance Technologies LLC raised its stake in Pagaya Technologies by 27.3% in the fourth quarter. Renaissance Technologies LLC now owns 1,354,064 shares of the company’s stock valued at $28,300,000 after buying an additional 290,379 shares in the last quarter. Finally, Nuveen LLC raised its stake in Pagaya Technologies by 3.7% in the fourth quarter. Nuveen LLC now owns 1,299,274 shares of the company’s stock valued at $27,155,000 after buying an additional 46,536 shares in the last quarter. 57.14% of the stock is currently owned by institutional investors and hedge funds.

Pagaya Technologies Stock Performance

The company has a debt-to-equity ratio of 1.22, a current ratio of 10.55 and a quick ratio of 10.55. The company has a market capitalization of $1.29 billion, a price-to-earnings ratio of 17.80 and a beta of 5.42. The stock has a 50 day simple moving average of $12.28 and a two-hundred day simple moving average of $18.75.

About Pagaya Technologies

Pagaya Technologies is a financial technology company that applies artificial intelligence and machine learning to the credit and asset management industries. Through its proprietary data-driven platform, Pagaya analyzes vast datasets from consumer credit portfolios to build predictive risk models, enabling institutional investors to gain access to alternative credit products. The company’s solutions streamline underwriting, optimize portfolio construction and facilitate the efficient securitization of consumer loans, credit card receivables and other asset classes.

Founded in 2016 and headquartered in New York, Pagaya has expanded its operations to serve financial institutions and asset managers primarily in the United States.